Posco International discovers new gas reservoir
Posco International gas production facility at A-30 in Myanmar is seen in this 2020 photo. / Courtesy of Posco International
By Kim Jae-heun
The country's largest trading company POSCO International said Monday it has discovered a new gas reservoir in Myanmar, where it is already operating a large-scale gas field.
The company said it hopes to develop another gas field there pending positive evaluation of the deposit's viability.
According to the POSCO affiliate, it confirmed approximately 38 million cubic feet of gas productivity per day on Mahar as a result of drill stem test. The company will begin drilling into the stratum to conduct complete evaluation of the natural resource starting next year and announce an updated plan to operate the new gas field.
POSCO International's gas business in Myanmar has long been the company's cash cow. It is currently operating two gas fields on Shwe in A-1 mine lot and Mya in A-3 mine lot. The gas it produces in three fields are sold to Myanmar and China. The company recorded its largest business profit of 650.3 billion won ($549.84 million) last year.
Mahar is only 30 kilometers away from the Shwe gas field, which makes it possible for POSCO International to share the production facilities already established there. This will reduce investment costs and shorten the construction period for the trading company.
In addition, POSCO International plans to explore another spot for its drilling exploration on the Yan Aung Myin stratum, some 24 kilometers from Mahar in search of further gas fields.
“The discovery of the new gas reservoir showed Posco International's competence in exploration for the natural resource. This will become a chance for the company to take a leap in the energy field and we will continue to explore for gas fields to complete the energy value chain of the POSCO Group,” a POSCO International official said.
The trading company is currently developing phased models for stable production of gas in the two gas fields it is operating. Starting from 2021, it will open an additional gas field on Shwe and a new one on Shew Phyu in 2022 to produce natural resource there.